LIVEPERSON SOLUTIONS BRIEF
Identify Your Highest
Value Visitors for
Real-Time Engagement
and Increased Sales
2014
LIVEPERSON SOLUTIONS BRIEF Predictive Intelligent Targeting
Predictive Intelligent Targeting technology in LivePerson’s LiveEngage digital engagement platform helps organizations
maximize the ROI of their live chat programs by selecting the very best candidates for proactive digital engagement. The
solution uses targeting algorithms—that include visitor behavioral patterns, interaction records, outcome data, and
other variables—to maximize revenue per interaction, as well as an agent utilization engine to minimize cost per
interaction. Machine learning continuously improves the targeting model while eliminating the cost, hassle, and reduced
accuracy of managing and updating rules manually.
Why is intelligent targeting important?
Online selling is in a period of rapid and sometimes unpredictable change. Consumers now have 24×7 access to a vast amount of information
via multiple channels, including social media, mobile apps, search engines, and text messaging. As buyers become more tech savvy, they expect
immediate, accurate, and personalized answers to their questions. Businesses that engage online visitors personally—with the right message at
the right time—differentiate themselves with a more compelling customer experience.
Manually defined targeting rules are still very powerful, but at best, they represent the optimal targeting scenario for a moment of time in
the past. In addition, keeping the rules reasonably up to date requires significant manual analysis and maintenance by your staff. Predictive
Intelligent Targeting, on the other hand, uses machine learning to identify recurring themes that result in conversions over time, and adapt in
real time as trends evolve.
Who can benefit from Predictive Intelligent Targeting?
Predictive Intelligent Targeting can benefit any new or existing LivePerson customer that meets these criteria:
TARGET (Hot Leads)
• Utilizes, or plans to utilize, LivePerson live chat to boost online
sales or generate sales leads
»» Is able to define a “success event” that occurs entirelyALLwithin
an
VISITORS
online visitor session (a sales transaction, registration as a lead in
• Has a clear business goal in one of the following areas:
the CRM system, user completion of a form or application, etc.)
Target
(Hot Leads)
Featuresevents per month for
• Achieves
at least
200 success
»» Total or incremental sales
Quality &
Quantity
ongoing» Agents
analysis
idle if target too narrow
»» Total or incremental revenue
» Optimization technically and analytically intensive
» No prioritization or real-time updates
»» Lead generation
TARGET
TARGET (Hot Leads)
ALL VISITORS
ALL VISITORS
Quality &
Quantity
Target Features
Target (Hot Leads) Features
» Agents idle if target too narrow
Quality &
Quantity
» Optimization technically and analytically intensive
» Dynamic targeting based on agent availability
» Optimized daily by automated machine learning
» Prioritized visitor scoring updated in real time
» No prioritization or real-time updates
Fig. 1 Intelligent Targeting With Manual Rules Versus Predictive Intelligent Targeting
TARGET
ALL VISITORS
© 2014 LivePerson, Inc.
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LIVEPERSON SOLUTIONS BRIEF Predictive Intelligent Targeting
Real-Life
Examples
Reducing the effects
of seasonality
A leading U.S. software
provider was able to
Why migrate from rules-based targeting?
If you are already using rules-based targeting through the LiveEngage platform, migrating to
Predictive Intelligent Targeting will improve your bottom-line results while reducing staff time.
The following are some of the primary areas of business impact:
• Lower maintenance costs: Redeploy resources
• Automatic adaption to seasonal and
increase conversions
from maintaining and updating targeting rules
permanent changes: The algorithm makes
during the low season—
to more strategic priorities.
adjustments for changes to the website,
and throughout the
year—by deploying
Predictive Intelligent
Targeting. The company
experienced a 22 percent
increase in annual
conversions, beating the
• More precise prioritization of leads:
Rather than having two categories of visitors
staffing patterns, and sales goals.
• Full staff utilization: Target the maximum
(“hot leads” and others), each user is scored
number of visitors that your agents can handle,
according to a variety of detailed criteria,
minimizing idle time.
resulting in the best leads being engaged first.
for the high season only.
Why use Predictive Intelligent Targeting with
your new live chat deployment?
Eliminating complexity
If you are planning a new sales deployment of the LiveEngage platform, using Predictive Intelligent
A global bank based in
Targeting from the beginning will reduce deployment costs and improve results. In addition to the above
the Asia-Pacific region had
benefits, the following are some additional areas of business impact:
previous results achieved
more than 300 targeting
rules for live chat across
more than 350 Web pages.
Maintaining those rules
required 20 staff hours
• Lower setup costs: Setup time is up to 80
• Fast start: Predictive Intelligent Targeting
percent shorter with Predictive Intelligent
starts working after analyzing only 200
Targeting than with manual rules.
site conversions.
• Less staff time for setup: Your team members
per week. After deploying
will not need to research and write targeting
Predictive Intelligent
rules for your launch.
Targeting, conversions
increased by 19 percent
as the quality and quantity
of live chat conversations
improved. And the staff
time that previously
managed the rules
was redeployed.
© 2014 LivePerson, Inc.
3
LIVEPERSON SOLUTIONS BRIEF Predictive Intelligent Targeting
Real-Life
Examples
Increasing
e-commerce sales
A major U.S. technology
retailer conducted A/B
testing to compare
manual rules with
How does Predictive Intelligent Targeting work?
LivePerson’s Predictive Intelligent Targeting solution uses Big Data analytics to assign a score to each
eligible website visitor within 10 seconds of arrival. The scoring engine uses a state-of-the-art Visitor Intent
model to identify which customers are likely to convert via self service versus those who need live chat
assistance. The model also prioritizes those who are most likely to accept a proactive chat invitation. Agents
engage with users for whom a live chat engagement is most likely to make a difference, according
to availability.
Predictive Intelligent
Through machine learning, the scoring engine continually adjusts and improves the targeting model,
Targeting for its live chat
incorporating both user-defined events (UDEs) and raw data. No manual adjustments are needed—even if
program. The result was a
your company modifies staffing levels, makes changes to a website, launches new products, or discontinues
40 percent conversion
old ones. Predictive Intelligent Targeting quickly learns the impact of all such changes and makes
lift and a 19 percent
adjustments on the fly.
revenue increase for
customers engaged
through Predictive
Intelligent Targeting.
Launching live chat
To precisely manage agent capacity and the scope of your engagements with customers, LivePerson’s agent
utilization engine works with Predictive Intelligent Targeting to assign specific percentages of live chat
conversations to different lines of business, visitor segments, or engagement methods. These settings can be
adjusted based on what is happening in your business, such as product launches or marketing campaigns, to
optimize the customer experience and achieve maximum revenue.
quickly and effectively
In addition, Predictive Intelligent Targeting is highly flexible and customizable, allowing you to tweak or
A global Software-as-a-
guide algorithms to meet your business needs by creating exclusions (e.g., don’t invite visitors based on
Service provider launched
certain countries to which you don’t ship) or even focusing on new product introductions or
a new sales deployment
specific brands.
of live chat powered by
Predictive Intelligent
Targeting. As a result,
inside sales representatives
Chat History
improved their average
no maintenance of
Geo
Visitor Profile
sales per day by 33
percent, with
Search KeyWords
ISP
Business Specific Events
Referral
Browser
Navigation Patterns
rules required.
Purchase Patterns
Self-Serve Patterns
Intent to Convert via
Self Serve
Intent to Accept Chat
Intent to Convert via
Chat Assisted
Individual visitors who are most likely to convert
with chat assistance.
Fig. 2 Predictive Intelligent Targeting Visitor Intent Model
© 2014 LivePerson, Inc.
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LIVEPERSON SOLUTIONS BRIEF Predictive Intelligent Targeting
Additional
Benefits
Optimize the size of
your agent team
Predictive Intelligent
Targeting includes an
What does the deployment process look like?
Since the LiveEngage platform resides in the cloud and no rules need to be created, deployment is an
easy process. Your LivePerson Customer Success value manager can help you determine your precise
business goals—total or incremental revenue, or total or incremental sales—and identify who is eligible for
a proactive chat invitation.
ROI-driven staffing tool
Eligibility rules for proactive chat can be modified according to your company’s needs, including
that helps organizations
parameters unique to your industry, geography, or company focus. Eligibility criteria can be adjusted as
determine the number
your business needs change, but you will never need to manually change your targeting rules.
of agents required for
each hour to achieve a
particular result.
Configure live chat for
the best results
LivePerson’s Pay for Performance Managed Services are another resource that will help you get the most
out of your investment in live chat and Predictive Intelligent Targeting. Leveraging the industry’s most
experienced chat program managers for end-to-end program management will help you achieve the best
results. And the risk is taken out of the Pay for Performance engagement: fees for the service are based on
achievement of agreed-upon performance goals.
Opportunities analysis
using Predictive
Intelligent Targeting
leverages transaction
and conversation data
to help determine how
many customers should be
engaged in order to hit the
“sweet spot” between cost
and revenue targets.
TARGET (Hot Leads)
ALL VISITORS
Quality &
Quantity
Target (Hot Leads) Features
» Agents idle if target too narrow
» Optimization technically and analytically intensive
» No prioritization or real-time updates
Fig. 3 Predictive Intelligent Targeting opportunities analysis helps determine engagement and staffing levels for
optimal results. This example pinpoints the precise percentage of visitors required for a particular customer to
achieve 100 percent ROI.
TARGET
ALL VISITORS
© 2014 LivePerson, Inc.
5
LIVEPERSON SOLUTIONS BRIEF Predictive Intelligent Targeting
More
Real-Life
Examples
What results can I expect?
E-commerce
will also see significant improvements in conversions and revenue per chat hour. Specific improvements will
A North American
depend on the organization, and particularly what it does with staff resources before and after the transition.
e -commerce retailer
The following averages are based on the aggregate feedback of dozens of LivePerson customers:
deployed Predictive
Intelligent Targeting and
more than doubled the
staff hours devoted to live
chat. Agents are conducting
29 percent more
conversations per hour,
Every organization that migrates from rules-based targeting to Predictive Intelligent Targeting will see a
dramatic reduction in staff time to manage targeting rules—90 percent on average. Most organizations
• Agents fully utilized before transition; same labor hours after transition: Companies that
already keep their agents busy will find that their conversations are more productive with Predictive
Intelligent Targeting because the algorithms target the customers who are most likely to convert with
live chat assistance. On average, organizations see a 20 to 25 percent lift in conversions per
chat hour.
• Agents underutilized before transition; same labor hours after transition: If agents have
and the company realized
significant idle time or a lower than desired concurrency rate, Predictive Intelligent Targeting can fill
an amazing 200 percent
their queues with well-qualified leads. Organizations report an average 15 percent increase in live
lift in gross chat revenue
chat engagements per labor hour—with some organizations seeing as much as a 70
per labor hour.
percent improvement.
• Added labor hours after transition: Opportunities analysis sometimes shows that the best strategy
Telecommunications
is to expand the capacity of proactive chat to optimize ROI. Organizations using this strategy can
A European telco deployed
increase incremental sales by an average of 20 to 25 percent.
Predictive Intelligent
Targeting and increased
live chat staff hours by 25
Key Business Benefits of Predictive Intelligent Targeting:
percent. The result was a 28
percent improvement in
chat acceptance rates and
Conversions
20% to 25%
Lift in conversions per chat hour
Chat
Engagements
15%
Increase in live chat engagements per
Incremental
Sales
20% to 25%
a 23 percent increase in
gross chat conversions.
B2B sales
A European distributor
of electronic components
migrated to Predictive
labor day
Increase in incremental sales
Intelligent Targeting
while keeping the same
staffing on live chat. Chat
conversations per labor
hour increased by 68
percent, while incremental
chat revenue per labor
hour rose by an
astounding 108 percent.
About LivePerson
LivePerson, Inc. (NASDAQ: LPSN) offers a cloud-based platform that enables businesses to proactively
connect in real-time with their customers via chat, voice, and content delivery at the right time, through
the right channel, including websites, social media, and mobile devices. This “intelligent engagement” is
driven by real-time behavioral analytics, producing connections based on a true understanding of business
objectives and customer needs. LivePerson is headquartered in New York City with offices in San Francisco,
Atlanta, Tel Aviv, London, Amsterdam, and Melbourne.
Contact
LivePerson, Inc.
T: 212.991.1794
475 Tenth Ave
F: 212.609.4233
5th Floor
[email protected]
New York, NY 10018
www.liveperson.com
© 2014 LivePerson, Inc.
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